Iron ore price negotiations - Citigroup raises forecast for 2010-11
Wednesday, 19 Aug 2009
Citigroup raised the expectation to the annual iron ore contract price of 2010/2011. It is expected that the annual benchmark price will be increased 15% over 2009/2010, while the previous expectation was 16%.
The group pointed out that the factors deciding the annual iron ore contract price of 2010/2011 include spot price, China's related policies and production situation, freight, the global demand and the strategies.
The current premium on spot price over the contract price exceeds 10% and even the iron ore manufacturers produce good at the largest capacity in the following two years, the market will still be in the state of short supply.
